XTO sets $3.3 billion capital budget for 2009
XTO Energy Inc., Fort Worth, approved a 2009 capital budget for development and exploration expenditures of $3.3 billion.
By OGJ editors
HOUSTON, Nov. 21 -- XTO Energy Inc., Fort Worth, approved a 2009 capital budget for development and exploration expenditures of $3.3 billion.
An additional $500 million has been budgeted for the construction of pipeline, compression, and processing facilities. With these expenditures, it plans to increase 2009 production volumes by 18% over 2008 levels.
"In these challenging times, the strength of our property base allows XTO to continue to create shareholder value through volume growth and strong economic margins," said Keith A. Hutton, XTO president.
"With this managed growth strategy, the company expects to average utilizing 90 drilling rigs for 2009. Activities will include drilling 1,250 new wells and conducting 800 workover events," he said.
During the year, the eastern region will be allocated $1 billion. The Barnett shale will utilize about $800 million. The Arkoma basin and Midcontinent properties will be allocated $500 million. The Bakken, Gulf Coast, and Offshore areas will be allocated $350 million.
Programs in the Permian district are expected to utilize another $300 million. The San Juan, Raton, Uinta, and Piceance basins combined will be allocated $250 million. XTO will target $100 million for exploration events.